Ambarella Speaks On Financial Impact of Generative AI
***************** ********** **-******* ******** ***** ************, ******** ********** ** to *** ****. ***, *** ******* expects ********** ******* **** ***** ***** with ********* ** ********** **.
** **** ****, ** ******* *********'* Q3 **** ******** **** *** ***** comments, ********* ********** **'* ********* ************.
Executive *******
*********'* ******** ********* ***********, ******* **** Ambarella ******* *** ****** ******* ****** guidance **** ***-**-**** ***** ** **% to **% *** ****** **** (*** 2024 - *** ****), ******* * bullish ********* **** *** *** ******* in *** **** ******, ** ********* implementing ********** **-******* ***** ** ***** products.
********* **** *** ********** **-******* ***** are *** "****** ****" ** "*** product *******" ** *** **** ****** in *** **** ****. **** ***** this *** ******* ******* "**** *******" (November **** - ******* ****) ** Verkada ****** *** ** *** ***** adopters ** ***** *****. *******, *** company **** ** ******* (********* ***, CV5, *** **** *****) **** ** 70% ** *** ***** ******* ** the ****** - ******** **** *******.
Three ******* "*****"
********* ***,***** ****, **** *** *******'* "*** ******* momentum" ** ********** ******** ** "* series ** *****"****** *** ******** ****. ********* ******** ** ****, ****** they ****** ***** ******* ** ******** in "***** *****," **** *** ********* implementing ******** **** **** *** ** "wave *," **** ************* ** *** family ***** *** ******** ********* *** generative ** ** **** ** "**** 2," *** **** *** ***** "****" targeting ********** ************.
"**** *" ** ***** ** *** existing *** *** ***** **** *** include *** ******* *** *** ****** GenAI *** ***********-***** ********, ** ** computer ****** /*** ******** ****.
*** "**** *" ********, *** *** CV7 ****** (**** *** ****) *** do ****** **/**** ** *** ****** transformer-based ******** ********.Revenue **** ***** ** ** (**** *******) **** **/**** *** ******* ** ******** *********** ******** **** ****, ********* *****. [Emphasis added]
*** *** ****** ******* ****** ** 2026 *** ** “**** *”. *** CV3 ****** ** ********* ******** ** automotive ************.
Revenue **** ********* ** **** ******** ****
****** **** "****** ****," *** ***** Wang ******** ** **** ****** ***** customer ******** ** *** **** ****** CV7x ****** ** *******, ********** *******'* 4K ****, *******, *** *** ******:
*** *** ********** - ** *** announcing *** ***** ******** *** *** CV ****** ******, ***** ********** *** beginning ** *** ****** **** ** new ******* ******* * ********* *******. In *** ********** ******,Verkada ********** *** **** ********** ** ******, ********* *** ** ****, ******* *** *** ******* ***** ** *********'* ****** ****, the new camera feature advanced analytics, including AI-powered search. [Emphasis added]
** ********* ******* ********** ******* ** its **** ****** **** ******* (******** 2024 - ******* ****), ** ******* more ** **** ** *** *******'* 2026 ****** ****:
** ******** ** *** *** ** and *** ******** ** ****** *********. We ******* **'** ***** ** *** some ** *** ********* ******* * CLIP **** ** ******* **** *** CV70 ****** ****** ******** **** ****. And ** ******* ****in [******] ****, **'** ***** ** *** **** ******* ** ** ********.
********* ******* ********* ** ** *** they ****** ********** ** ************ ** its ****** ******** ** ***** *** company's ******* ** *** ****** **** as ********* **** ******* ** ******-*** SoCs *** *** ******* *** & software **** ** ******* **** ************:
** ***’* **** ** "******** *******" surcharge, *** ** *** ** **** AI *** ******** ******* ***********, ********* must ******* ** *** *** ********* that ******* *********** ********, *** **** includes *** ****, ***, *** ** families ** ***. ***** *** ********* SDK **** *** ***** ******* ********. We **** ****** *** *** **-*** software. **,the ***** ******* ** *** ******** ****** ** ******* ********* **** ********* ********* ** *** *** ****** **-*********** ****. [Emphasis added]
***** ** ***'* ****** ********* ********* to ****** ******** ********** ** ****** on *******, *** ******** *** *** more ********** ***** **** **** ***** chips **** ********* *** ********* (************ ***** **** *** ********** ** Onboard ****** ************ ********). **** ********** ** *******, ***** chips *** **** "******-*****," **** ********* deploying ***** ****** ****** ** ****.
Gen ** ** **** **. *****
***** ********* ******* ********* ***** *** most ******** ***** ** "******* ** advanced*********** ************ ****" ** *** **** *** years, ** ****** **** ** *** a **** ******** *** **** ***** video ************/********* *********, **** ** *******, as************ ********** ** ** *** ***** is **** **** ******** *** ****** for ****. *******, **** **** *** **** they **** *** **** ** *** more ******** ****, ** **** **** be ************ ** **** **** ********* other **** ********** ** ** *** edge ***** *******.
** ****** ****-***** ********** ** ** perform ********** ** ***** *************** *** to ************* ********** ************. *** ****** used *** ****-***** ********** ** ***** have ***** ********** (**** **********) ** require ********* ******** ** ***** *** performance (*.*., ****** ****). ********* ** a ******-*** *** ***** ** * viable **** *** ***-***** ***** ************/********* providers ** ***** ******** ********** **, albeit ***** **** ******* ******.
************, *** **** ******* *** *** customers *** ****** *** ***** **** capabilities *** *** **** ** ******* of ******* ******* ****** ******** ****** (VLM):
******* ********* **** ** **** **** to ***** ******* ** *** ** and *** **** **** ** ******** or ***** ***** ** ***** ******** models ** **** ***** ********. ** started ******* ** **** ** **** products, *** *** **** **** ******* our ******* *********? ** *** **** pleased ** **** *** **** *** chips **** *** **** ** ****** for *** ********** ******** ******** *** be **** ** *** * ***** language *****; ******** **'* *** *****, it's * * ******* ********* **** type ** *** ******* *** *** derivative ** ****.
**** ******* ***** **** ******* *** "CLIP-like" ********** ** ****** ******** ****** at *** **** **** *********'* ***** helps ********* "************* ****** *** ****" compared ** ******* ***** ** *** cloud:
** ********** ***** *** ********* ** start ******* ** *** *** **** can *** ** **** **** ** edge ****** ** *** ******. **'** talking ***** * *-**** **** ******* a * ******* *********, ***** ** very ********* ** **** ** *** market *****. ** *** ** ****, the *********** ******** ****** ******* *********, for *******, ***** ******** ** *** home ********* **** ****, **** ****, just ********* **** ****'** ***** ** use *** ** **** ** *******. In ****, **** *** ********* **** they **** ******* * **** **** of ****** ******* ** *** ******, and **** ****** * ******** $** a *****.We ***** **** ** *** ****** * ******* ******* ** **** *** ************* ****** *** **** ** ******** **** *******. [Emphasis added]
Future ******* "*****" ********* *** *****
****** *** "****** ****" ** ******* injection **** ***** ** *** **** series, ********* ******** ******* ** ****** sources ** ******* "*****," ********* *-********* SoCs:
***** ******** *** ******* ******* "*****" include ** ******* *****,an *********** *** *** *******, L2+ to L4 software stack IP, and the N1 processor for edge AI infrastructure. As the business case for these opportunities emerges we will provide more specifics on the timing. [Emphasis added]
2nm ******* *** *** ************ *****
**** ***** "*********** *** *** *******" will ** *** *** ************, ***** include ***** ******** ** ******** *******, as *** ****** **** ********* ** the *******'* ******** ****:
*** ***** **** ****** ** *** IoT. *** ********** ***, ** **** as ***** *** ********, **** ******* from **** [*** *******].
*** ***** **** ********** ** **** detail ***** *** **** ** ***** "to *** **** ******** ****":
*** *** *-********* ****, **'* ********* for ** ** ******** ******** ** our *** ********** ** ******* *** need *** *** ** ********* *** new ** ********* **** *** ** and ***** ***** ** *********** ********. We **** ********** ******* *** ************ based ** *** *-********* ******* ****.
** ******* **** *** ** ********, I ***** ***2-nanometer ******* ** ***** ** **** * ***** **** ******* ** ******* ** ******* *** ** ** ** *********** ************; ** **** ** ** ** *** **** ******** ****. Of course, we need to solve not only processing performance but also DRAM bandwidth. But I think we do have a plan to address both. [Emphasis added]
**** ***** **** *** ******* *** "only ****** *** [***] *-********* ******** on [***] ******** *******," *** ** expected "*** ***** *-********* **** **** tape *** [**] ** **** **** (2025)." ** **** ********* **** *** 2-nanometer ***** ****** ** ********** * "family ****" ********* *** *-********* *** 10-nanometer *****.
Fabrication *******, *******
********* ********* ** ** **** ******* is *********'* ************* ******* *** *** current "******** *** ********":
******* ** ********* *** *** ******* for *** ******** *** ********.
*** ******* *** *** ********** ******** whether ******* **** ** *** ************* partner *** *** *-********* *****, ** it "****** ******* **** ******* ** the **** ** ****** ** **** time."
Pricing **********
***** ********* ****** ********* *** *******, the ******* ********* ****** *** **** recent ******** **** ** *** *** average ******* ***** (***) "********* ***** up *** **" ********* **** *********** and ***** ****** ** *** **** of *** ******* ***** ***** ** average:
*** ******* *** (******* ******* *****), the *******-**** ******* ***, * ***** say, ** ****** $**, $**, *** it ********* ***** ** *** ***** up. *** *** ****** *** ** around $**, $**. *** ***, ** anywhere ******* $** ** $**. *** CV7 [**** ***] ****, **** ** anywhere ******* *** [**] **** ***** to ******** $**, $**.
** *** *** *** **** *** trend ** ********** **** ** *** building **** ********** **** *** **** for ** *********** ***, *********, ******* up *** ***. ** ******** ** expect *** *** ****** ** ** there.